The Key Difference Between the Traditional Marketplace and the New

question 101

Multiple Choice

The key difference between the traditional marketplace and the new marketspace is that the latter is __________ exchange environment.

• A) tangible
• B) competitive
• C) physical
• D) material
• E) digital

---

Definitions:

Service Department Cost Allocation

The process of assigning indirect costs from service departments (like maintenance or HR) to producing departments based on their usage of services.

Step-Down Method

The step-down method is an accounting technique used to allocate service department costs to production departments, often in a sequential manner that recognizes service departments' interdependencies.

Direct Method

A method of computing the net cash provided by operating activities in which the income statement is reconstructed on a cash basis from top to bottom.

Cost of Service Departments

Expenses connected with the operations that provide supportive services within a company but do not directly contribute to the production process.